Contract Day Rate Calculator 2026/27
Turn a day rate into an annual figure, and see the permanent salary it actually compares with once holiday and unpaid gaps are taken out.
Holiday, illness, and gaps between contracts.
Annual billings
£103,500
230 billable days · £8,625 a month
- Comparable permanent salary
- £82,800
A permanent salary carries holiday, sick pay, employer pension, and employer NI that a day rate does not. This comparison discounts billings by 25% to reflect that — adjust it upward if you value the flexibility, or downward if you carry high insurance and accountancy costs.
Common questions
- How many billable days are in a year?
- There are about 260 working days. Most contractors bill 225 to 240 once holiday, illness, and gaps between contracts are taken out — assuming all 260 is the most common mistake in day rate maths.
- What day rate matches a £60,000 salary?
- Roughly £320 a day over 235 billable days, once you account for the holiday, sick pay, employer pension, and employer NI a permanent salary includes and a day rate does not.
- Does this account for IR35?
- No. Inside-IR35 engagements are taxed broadly like employment, which materially reduces take-home from the same headline rate. Check your status determination before comparing an inside-IR35 rate with an outside-IR35 one.
A guide only, based on 2026/27 rates. It does not model IR35 status, corporation tax, dividends, or umbrella margins.